伊顿公司收购Ultra PCS：为高增长、高利润率资产支付高额收购倍数

Acquisition of Ultra PCS: Hightake-out multiple for a highgrowth, high margin asset ETNEQUAL WEIGHTU.S. Multi-IndustryNEUTRALPrice TargetUSD 323.00Price (13-Jun-25)USD 323.66Potential Upside/Downside-0.2%Source: Bloomberg, Barclays Research The Ultra PCS acquisition will likely push up sales growth andmargins in the Aerospace portfolio at ETN. Post-acquisition,ETN will have a 6-7% sales exposure to Military. We appreciate your5-star votein the2025Extel All-America Research Surveyin theElectricalEquipment & Multi-Industry category.View our analysts » Vote 5 Stars for Barclays » U.S. Multi-Industry Julian Mitchell+1 212 526 1661julian.mitchell@barclays.comBCI, US For our takeaways from our meeting today with ETN's CEO Paulo Ruiz and AerospacePresident John Sapp, please see here. Jack Cauchi+1 212 526 9154jack.cauchi@barclays.comBCI, US ETN announced this morning it has signed an agreement to acquire Ultra PCS from theCobham Ultra Group (private, not covered) for $1.55bn. The deal is very consistent withthe strategic focus laid out at the recent CMD. ETN expects the acquisition, which is due toclose in 1H26, to be accretive to 2026 EPS. Kenyon C Pelletier+1 212 526 7516kenyonc.pelletier@barclays.comBCI, US We highlight: •ETN expects Ultra PCS's EBITDA margins to be in the 30%s in 2025 and 2026 – this compareswith mid-20%s EBITDA margins in ETN's Aerospace segment (which is where Ultra PCS will beconsolidated). Ultra PCS has grown +MT% organically for the past 3 years (which compareswith Aerospace segment organic sales growth of ~10% since 2022). Matthew Laflash+1 212 526 8639matthew.laflash@barclays.comBCI, US •Based on the announced deal price, the valuation (~18X '26E EV/EBITDA) looks expensive inour view, but given where ETN trades currently (~19X '26E EV/EBITDA), we think the highgrowth rate and high margin profile compensates for this. Jimmy Yunhao Jiang+1 212 526 6042jimmy.jiang@barclays.comBCI, US •The business is 75% Military / 25% Commercial, and is in many of the major programs acrossboth end markets, including the F-35, A350, B787, and A220 programs. Given the newness ofmany of these programs, the business is primarily OE (~75%), but there is potential for agrowing AM opp'y in the future. Haemaru Chung+1 212 526 4758haemaru.chung@barclays.comBCI, US •There may be some sales synergies with ETN's prior acquisition from Cobham back in 2021,which sold air-to-air refueling and actuation & pneumatics technology, as opposed toelectronic controls with Ultra PCS. Similarly, ETN sees opportunities for cost synergiesbetween these businesses through the elimination of supply chain redundancies, pricingrenegotiations with suppliers, consolidation of SG&A, and lean savings. Barclays Capital Inc. and/or one of itsaffiliatesdoes and seeks to do business with companiescovered in its research reports. As a result, investors should be aware that the firm may have aconflict of interest that couldaffectthe objectivity of this report. Investors should consider thisreport as only a single factor in making their investment decision. Please see analyst certifications and important disclosures beginning on page 5.Completed: 16-Jun-25, 13:54 GMTReleased: 16-Jun-25, 13:58 GMTRestricted - External •We estimate a potential +30bps adj. EPS accretion for ETN in 2026.•The balance sheet leverage is likely to be in-line with the MI average following this deal (ETNwas 1.2X net levered at end-2024).•The deal is consistent with ETN's messaging at its March 2025 CMD as regards a focus ongrowth in Electrical and Aerospace hardware with high organic sales growth potential, highmargin potential, and high returns on capital. Details: We show below our illustrative ROIC / accretion analyses for ETN's pending acquisition of UltraPCS, based on our current ETN estimates and information on the deal provided by thecompany. FIGURE 1. ETN - Ultra PCS Scenario Analysis: ROIC (for illustrative purposes only) Note: Ultra PCS (private) is not covered by Barclays. Our analysis reflects information on the deal released by ETN; $m unless otherwise statedSource: Barclays Research, Company Data We show below our EPS accretion scenario for Ultra PCS, showing 2026 on an annualized basis.Per the deal PR, the acquisition is expected to close in the 1H26. We estimate ~30bps or $0.04EPS accretion in 2026. For 2027, we est. ~1% EPS accretion. FIGURE 2. ETN - Ultra PCS Scenario Analysis: Accretion (for illustrative purposes only) Note: Ultra PCS (private) is not covered by Barclays. Our analysis reflects information on the deal released by ETN; $m unless otherwise statedSource: Barclays Research, Company Data What Is Ultra PCS Limited? The company produces sensing, electronic controls, data processing and stores ejectionsolutions designed for safety and mission critical aerospace systems. Ultra PCS Limited hasbeen conducting business for over 100 years and has over 40 years of experience in electronicsfor military platforms. Its products